A recent report that was no surprise to mortgage brokers in Baldivis, Kwinana and Rockingham, first home buyers across the Perth area paid a record $450,000 as the median price on first homes. For the past year, homes under $600,000 have been moving faster than anyone in the market can remember.
The Overall Perth Market
According to Debra Goostrey, Chief Executive of the WA Division of the Urban Development Institute of Australia (UDIA), there is such a large number of people competing for homes priced under $600,000 that it is driving prices up. In addition, Ms Goostrey says that there were 5,000 more applications for FHB grants in July 2013 than in July 2012, and almost twice as many applications as there were in July 2011.
Western Australians spent $1.6 billion or 18.3% more on dwelling investment finance over the last twelve months than they did the previous twelve months. Still, Ms Goostrey feels that there is a shortage of dwellings that are affordable for the typical first home buyer or first time investor.
Baldivis is Number One
The good news is that Baldivis was rated as the number one location for first home buyers, with 631 FHB grants paid. The median price for an established home was $440,000 while the notional house and land package price was $395,000. The notional house and land package price is computed by adding the median land price to the average value of construction approvals for houses in the region.
What it Means to Baldivis
Essentially, the numbers confirm what most people who work in the home loan industry already know–Baldivis is definitely the hottest suburb in Australia when it comes to housing. Since first home buyers are usually younger, it also helps explain why there are so many children and younger parents in Baldivis.
It also means that, even with all of the demand, Baldivis is still very friendly for first home buyers. The median price was nearly $50,000 less than the median price for a home in the entire Perth market, and was within the “affordable” range for first home buyers.
If you are considering a home loan in Baldivis, call (08) 9527 1800. Talk to a mortgage broker at Smartline Mortgage Brokers Rockingham.